Tuesday, November 30, 2010

Monthly Review - November 2010

November was a month of solid if unspectacular financial progress. Equities and commodities appreciated but those gains were partly offset by small losses on the ETFs and adverse FX movements as the AUD/NZD fell against the USD. Cash flow on the properties was negative(although still a positive contribution to net worth) due to a combination of repair bills and a two vacancies. Savings were average.

Here are the details:

1. my Hong Kong equity portfolio appreciated. There were no transactions this month;

2. my ETFs were mixed in line with their respective markets (Hong Kong, Russia, Taiwan, India and China) for a small net decline in value;

3. my commodities appreciated for a modest gain (with gains in the basket ETF, silver and HOGS offsetting a fall in NICK);

4. two of my properties were vacant but the portfolio is still making a positive contribution to my net worth. However, I have been hit hard with multiple repairs which were either paid in October or will be paid in November. This means that we had a negative cash flow in November. That said, as the biggest component of the monthly payments is principal on the mortgages, the properties remained profitable even with a vacancy and the bills. The situation will be better in December with one of the vacant units now let at a substantially higher rent;

5. currency movements were mildly unfavourable, as the AUD, NZD and RMB appreciated against the USD;

6. savings were positive in spite of income being low and expenses being slightly high. Net savings were average.

My cash position remains modest. Cash on hand and deposits now represent about ten months' worth of expenses.

For the month, net worth increased 1.53%. The year to date increase is 24.89%.

My target retirement window remains sometime between early 2012 and the end of 2013. Every passing month brings me closer to my retirement goal.